Used Car loan Refinance

[Caramelhunnyva]

Looking for a little advice

Last month I was approved for a car loan from my credit union. 7.78% interest rate, $400 payment and 84 month term.  I recently bought a house so the payment was something I was comfortable with.  

However, another credit union was offering reduced rates for used car loans and I was approved. 3.24% interest rate, $472 payment (i think) and 63 month term.

My question is, is it worth refinancing right now for a lower rate and shorter term? Thanks in advance for the advice

[sccredit]

$400 * 84 = $33,600

$472 * 63 = $29,736

Difference $3,864

I would say it is definitely worth it.

[Caramelhunnyva]

thanks I just wanted to be sure 

[Shooting-For-800]

I would refinance with the same term and lower rate and pay it like it was a shorter term.

Simple interest loans have no penalties for paying extra each month or paying off sooner.

You will have a lower required payment, pay less in interest, and pay the car off faster.